Xero vs Payroller — Australia 2026
Xero Payroll vs Payroller for AU small business. Compare STP Phase 2, Payday Super, Modern Award support, pricing & super clearing.
Quick Verdict
Xero Payroll for growing businesses; Payroller for micro-businesses
Payroller offers a free tier for 1 employee and $10/mo for up to 4, making it the cheapest entry point. However, it only has basic Modern Award support (3/5) and Payday Super readiness is unconfirmed. Xero Payroll scores higher on compliance (Payday Super ready, 4/5 awards) and integrates directly with Xero accounting. Choose Payroller only if you have 1-2 employees with simple payroll needs.
Feature Comparison
| Feature | Xero | Payroller |
|---|---|---|
| Headquarters | Wellington, NZ (AU operations in Melbourne) | Sydney, NSW |
| Entry Price | $35/mo | Free |
| BAS Lodgement | Direct ATO lodgement via Standard Business Reporting — prepare, review, and lodge your BAS without leaving Xero. No need to log into the ATO portal or use a separate tax agent portal. | Payroll only — no BAS features. Use your accounting software (Xero, MYOB) for BAS lodgement. |
| STP Phase 2 | compliant | compliant |
| Payday Super | ready | preparing |
| Modern Awards | Supports common Modern Awards natively via Xero Payroll. Complex award interpretation (hospitality penalty rates, retail casual loadings) may require Employment Hero or KeyPay integration for full automation. | Basic Modern Award support — major awards covered, complex interpretations (hospitality penalty rates, retail casual loadings) may need manual entry |
| Bank Feeds | Big 4 + 50+ banks | N/A |
| Data Hosting | AU | AU |
| AU Support Hours | 24/7 online support | Mon-Fri 9am-5pm AEST |
| Phone Support | No | No |
| Integrations | 1000+ apps | 5+ apps |
Pricing Comparison (AUD, Mar 2026)
Xero Plans
Ignite
$35/mo
AUD inc GST
- ✓Invoices: 20
- ✓Bills: 5
- ✓Bank Reconciliation: Yes
Most Popular
Grow
$75/mo
AUD inc GST
- ✓Invoices: unlimited
- ✓Bills: unlimited
- ✓Bank Reconciliation: Yes
Comprehensive
$100/mo
AUD inc GST
- ✓Invoices: unlimited
- ✓Bills: unlimited
- ✓Bank Reconciliation: Yes
- ✓Multi Currency: Yes
- ✓Projects: Yes
Ultimate
$130/mo
AUD inc GST
- ✓Invoices: unlimited
- ✓Bills: unlimited
- ✓Bank Reconciliation: Yes
- ✓Multi Currency: Yes
- ✓Projects: Yes
- ✓Analytics Plus: Yes
Payroller Plans
Free
Free
AUD inc GST
- ✓Employees: 1
Most Popular
Small Business
$10/mo
AUD inc GST
- ✓Employees: 4
AU Compliance Scores
How we scoreScores are out of 5 and reflect depth of compliance support, ease of setup, and ongoing reliability for Australian businesses. Assessed March 2026.
Xero
BAS Lodgement5/5
STP Phase 25/5
Payday Super5/5
Modern Awards4/5
GST Handling5/5
Bank Feeds5/5
Payroller
BAS Lodgement0/5
STP Phase 25/5
Payday Super3/5
Modern Awards3/5
GST Handling0/5
Bank Feeds0/5
Pros & Cons
Xero
Pros
- Australia's most widely-used accounting platform — your accountant almost certainly knows it
- Deepest bank feed coverage with 50+ AU banks including all Big 4 (CBA, NAB, Westpac, ANZ)
- Direct BAS lodgement to ATO via Standard Business Reporting (SBR) — no need for the ATO portal
- Largest app marketplace with 1,000+ integrations (Deputy, ServiceM8, Employment Hero, Shopify, etc.)
- AU-hosted data on AWS Sydney with SOC 2 Type II and ISO 27001 certification
- Payday Super ready for the July 2026 deadline with automatic super payments each pay run
- Payroll now included in all plans at no extra cost (STP Phase 2 compliant)
- 24/7 online support with callback service
Cons
- Most expensive of the major accounting platforms — Grow plan is $75/mo (was $52 before July 2025)
- Ignite plan limited to 20 invoices and 5 bills per month, pushing most businesses to $75/mo Grow plan
- No inbound phone support — callback service only, which may not suit everyone
- Complex Modern Award interpretation (hospitality, retail penalty rates) requires third-party add-on like Employment Hero or KeyPay
- Prices have increased significantly and repeatedly — Grow went from $52 to $75 in July 2025 alone
- No annual billing discount — all plans are monthly billing only
Payroller
Pros
- Free for 1 employee — lowest barrier to entry of any AU payroll software
- Very simple and easy to use — 85% of users run first payroll in under 15 minutes
- STP Phase 2 compliant with automatic ATO reporting
- Purpose-built for AU payroll compliance
- Cheapest paid plans in the market (~$4/employee/month)
- AU-made, AU-hosted, AU-supported (Sydney-based team)
- Employee self-service app for payslips, leave requests, and shift tracking
- Integrates with Xero and MYOB for accounting sync
Cons
- No HR features (onboarding, performance management, document storage)
- Basic Modern Award interpretation only — complex awards need manual entry
- Very limited integrations (Xero and MYOB only — no POS, rostering, or time tracking integrations)
- Payday Super readiness not yet officially confirmed
- Not suitable for businesses with complex payroll needs or 10+ employees
- No BAS, GST, invoicing, or accounting features — payroll only
Who Should Choose Xero
Xero is best suited for businesses that need small business, sole trader, accountant managed.
Choose Xero if you are:
- Small Business
- Sole Trader
- Accountant Managed
- Growing Business
Who Should Choose Payroller
Payroller is best suited for businesses that need micro business, sole trader with one employee, simple payroll.
Choose Payroller if you are:
- Micro Business
- Sole Trader With One Employee
- Simple Payroll
- Budget Payroll